Corporate news
Talaat Moustafa Group [TMGH]
FY2025 Results: Strong Revenue and Net Profit Growth Driven by a Diversified Business Model and Ongoing Local & Regional Expansion Plans
The company remains one of our top picks in the 2026 equity strategy with a target price of EGP 121.
• The Group recorded a 46% year-on-year increase in revenues, reaching EGP 62.5 billion, driven by strong performance in the hospitality segment and growth in residential unit deliveries.
• Net profit reached EGP 18.2 billion, up 43% year-on-year.
• The company maintains a strong financial position, with cash and cash equivalents of EGP 73.9 billion as of year-end 2025, against total debt of EGP 11.8 billion (72% of which is related to hospitality expansion). Accordingly, net cash stands at EGP 62.1 billion, providing significant financial flexibility to fund growth and manage market volatility.
Operating Performance
• Accelerated regional expansion through Banan (Saudi Arabia) and the Jud and Yaman projects (Oman).
• The company launched several new projects in 2025:
1.Sharm Bay (Egypt): Achieved sales of EGP 11 billion in 2025 since its launch in December 2025.
2.Jud and Yaman projects (Oman): Generated combined sales of EGP 2.1 billion in December 2025.
• Strong growth in unrecognized sales, reaching EGP 441.2 billion, up 50% year-on-year.
• The hospitality segment recorded revenues of EGP 14.9 billion, reflecting a 30% year-on-year increase, supported by strong operational performance across the Group’s luxury hotel portfolio, higher occupancy rates, and increased average room rates.
• The company is currently executing construction works at:
• Four Seasons Luxor
• Four Seasons Madinaty
• Marsa Alam Resort
These projects are scheduled for opening during 2026–2027, increasing total hotel room capacity from 3,500 to 4,500 rooms.
• The Group announced the development of a new Four Seasons hotel comprising 495 rooms, alongside an integrated mixed-use luxury development spanning 42.4 feddans adjacent to the Grand Egyptian Museum. The project will include restaurants, retail areas, luxury serviced residences, office spaces, and a world-class entertainment zone. Total investments are estimated at USD 788 million, with expected net income of USD 100 million.
• The Group signed a strategic partnership with Egypt Education Platform (EEP) to establish a private university in Noor City.
• A strategic partnership was signed with Mandarin Oriental to manage the historic Windsor Palace Green and Old Cataract Aswan hotels, with reopening targeted in 2027 under the Mandarin Oriental brand following comprehensive renovations.
• Contracted sales declined in 2025 compared to 2024, reaching EGP 382.2 billion versus EGP 504 billion in the previous year, marking a 24% year-on-year decrease. This decline reflects the exceptional performance in 2024 following currency devaluation and rising inflation, which accelerated purchasing activity. Sales in 2025 indicate a normalization of demand levels.
the Group’s performance reflects strong fundamentals, supported by the growing contribution of recurring revenue streams and continued expansion plans at both the domestic and regional levels.
Walaa Mosalam – Prime Research
WMosalam@egy.primegroup.org